Clearwater Paper — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net sales for the quarter ended September 30, 2026, were $385 million, a decrease from $399 million in the third quarter of 2025.
• Net loss from continuing operations was $2 million ($0.10 per diluted share) for the quarter, compared to a net loss of $53 million ($3.30 per diluted share) in the prior-year period.
• Adjusted EBITDA from continuing operations was $24 million for the quarter, an increase from $18 million in the third quarter of 2025.
• For the nine months ended September 30, 2026, net sales were $1.1 billion compared to $1.2 billion in the same period of 2025.
• Net loss from continuing operations for the nine months was $36 million ($2.23 per diluted share), compared to $56 million ($3.47 per diluted share) in the prior-year period.
• Adjusted EBITDA from continuing operations for the nine months was $18 million, a decrease from $87 million in the first nine months of 2025.
• Paperboard average net selling price decreased 4% to $1,111 per ton in the third quarter of 2026 versus $1,160 per ton in the prior-year quarter.
• Sales volumes were 322,265 tons in the third quarter of 2026, a 1% decrease from 324,198 tons in the third quarter of 2025.
• Sales volumes for the first nine months of 2026 were 953,906 tons, a 4% increase from 918,399 tons in the prior-year period.
• Net debt was reduced by $56 million year-to-date, driven by net working capital reductions, tax refunds, and additional representation and warranty insurance proceeds.
• Cash and cash equivalents were $35.7 million as of September 30, 2026, compared to $30.7 million as of December 31, 2025.
• Restricted cash for redemption of debt was $276.7 million as of September 30, 2026.
• Net cash flows provided by operating activities were $30.6 million for the quarter and $100.1 million for the nine months ended September 30, 2026.

Guidance and Future Outlook:

• Management expressed optimism regarding a continued recovery in SBS industry conditions.
• RISI forecasts improved pricing later in the quarter and into the next year.
• The company anticipates recovering some cost increases faced in transportation and chemicals through improved pricing.
• The company aims to return to cross-cycle Adjusted EBITDA margins and cash flows.

Business Segments and Product Lines:

• The company is a premier independent supplier of bleached paperboard to North American converters.
• The Augusta mill experienced a significant operational disruption late in the third quarter, with issues continuing into October.
• The Lewiston, Idaho facility had a planned major maintenance outage in the second quarter of 2026, whereas the outage occurred in the third quarter of 2025.
• The company successfully implemented its first announced price increase and is making progress on implementing the second increase.
• Average selling price improved by $34 per ton versus the second quarter of 2026, driven by price increases and sales mix improvement.

Market and Competitive Landscape:

• The SBS industry is facing cost headwinds in transportation and chemicals.
• RISI forecasts indicate improved pricing trends for the industry.
• The company faces competitive pricing pressures arising from capacity additions and demand reduction.

Risks and Challenges:

• Operational disruptions at the Augusta mill continue to affect volumes and costs.
• The company faces cost headwinds in transportation and chemicals.
• Risks include the inability to realize expected benefits from the Augusta facility acquisition, unexpected costs from the consumer products division sale, and competitive pricing pressures.
• Potential risks include changes in customer preferences, industry consolidation, raw material costs, manufacturing disruptions, labor disruptions, cyber-security risks, and environmental liabilities including PFAS-related claims.

Management Commentary and Tone:

• Arsen Kitch, President and CEO, stated the company delivered strong commercial execution with increasing average selling prices versus the second quarter.
• Management noted that volumes and costs were negatively affected by the Augusta mill disruption, but the impact was largely offset by a portion of RWI settlements.
• Management indicated they are making progress in returning the Augusta mill to normal operating conditions.
• Management remains optimistic about the industry recovery despite current cost headwinds.

Other Key Points:

• The company executed a refinancing of all debt, meaningfully extending maturities.
• The company received $17.5 million in additional representation and warranty insurance proceeds.
• Early debt extinguishment expense was $1.1 million for the quarter and nine months.
• Goodwill impairment of $48.0 million occurred in the third quarter of 2025 but was not present in the 2026 period.
• The company will discuss results during an earnings conference call on October 26, 2026, at 2:00 p.m. Pacific Time.